New Issue: GFL Environmental prices $400 million 7% eight-year notes at par

By Paul A. Harris

Portland, Ore., May 3 – GFL Environmental Inc. priced $400 million of eight-year senior notes (Caa1/B-) at par to yield 7% in a quick-to-market Thursday trade, according to market sources.

The yield printed at the wide end of both yield talk, which was in the 6 7/8% area, and initial price talk, which was in the high 6% area.

Citigroup Global Markets Inc. was the left bookrunner. Barclays, BMO Securities and RBC Capital Markets LLC were the joint bookrunners.

The Vaughan, Ont.-based waste management services company plans to use the proceeds, together with proceeds from senior secured term loans, to fund the redemption of any and all of its 9 7/8% senior notes due 2021 and repay amounts drawn under its revolving credit facility.

Issuer:	Hulk Finance Corp. to be assumed by GFL Environmental Inc.
Amount:	$400 million
Maturity:	June 1, 2026
Securities	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Barclays, BMO Securities, RBC Capital Markets LLC
Co-managers:	Scotia, NBC, CIBC, Macquarie
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	407 bps
First call:	Make-whole call at Treasuries plus 50 bps until June 1, 2021, then callable at 103.5
Equity clawback:	40% at 107 until June 1, 2021
Trade date:	May 3
Settlement date:	May 14
Ratings:	Moody's: Caa1
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	6 7/8% area
Marketing:	Quick to market

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